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Message: <blockquote data-quote="trancebum" data-source="post: 1194639" data-attributes="member: 2073">you think to proton will wither n die? think again....and again.....and again....AND again!! 22 March 2006, The Edge DailyGovt may allocate RM27.5b under 9MP for automotive sector THE government may allocate at least a total of RM27.5 billion over the Ninth Malaysia Plan (9MP) period from 2006-2010 to fulfill the aspirations of the National Automotive Policy (NAP). This will translate to about RM5.5 billion per annum, which is more than the revenue foregone from the previous rebates on excise duties given to national carmakers. In its research note on a preview of 9MP on Monday, Mayban Securities Research expects the government to spend that sum on disbursements to all eligible players to increase the competitiveness of the local auto industry. "We reckon some form of assistance would be given to all eligible players, including auto parts makers and perhaps even non-national assemblers, albeit with lower levels relative to national carmakers. "We believe the fund to be disbursed would be done under a matching basis, whereby the government would match an amount spent by the recipient in an area, e.g. research and development (R&D). [Proton spent >RM100mil to develop the waja. will they get it all back??]"However, we expect the amounts matched would depend on the area to be improved, with ciritical areas such as training and R&D to be provided more funds as compared to machine replacement," it said. Mayban Research said the main beneficiaries would still be Proton and Perodua and it did not expect the NAP funds to fully compensate the national carmakers for the loss of the rebates on excise duties. While expecting the matter could be covered under 9MP, the research house maintained a neutral stance on the sector for now due to the lack of specifics on the NAP and fund allocation. </blockquote>

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